SAP Business One for the Manufacturing Industry: Major Talking Points

Manufacturing is one of the most exhaustive and complex businesses, involving a plethora of processes that need to function efficiently and in perfect sync for the business to run smoothly.

However, factors like changes in raw material pricing, foreign exchange fluctuations, resource unavailability, and delays from suppliers often disrupt manufacturing processes.

SAP Business One for Manufacturing

Consequently, today’s business owners have started implementing ERP solutions to get a single-window view into every aspect of their manufacturing operations and overcome the most challenging production obstacles.

SAP Business One is a complete ERP solution specifically designed for small and medium enterprises to cater to a wide range of manufacturing processes. 

With its easy-to-navigate, user-friendly interface, the software gives manufacturers the ability to plan and execute steps that ensure a perfect alignment between demand and supply and help optimize business profits.

9 Key Features of SAP Business One for Manufacturing

1. Resources Module

The ability to plan production, i.e.,managing the demand and supply of raw materials and finished goods, while keeping in mind the capacity constraints in terms of machine, labour, and resource availability, is a crucial requirement of the manufacturing industry.

To account for this need, SAP Business One includes enhancements in the form of a robust module for resource planning.

The Resources Modules provides the required visibility to avoid bottlenecks in production and optimize capacity planning. This module helps users capture data associated with machine, labor, and other resources – the costs of which are included in the final product cost. Such information includes capacity data by warehouse, the daily capacity for labor, machines, and other equipment, and remarks and attachments that need to be added to the resource master data.

The Resources Module is linked to the fixed assets and employee data, and defines the accounts to be used, with respect to labor, machines, and other resources, in advanced account determination.

2. Wholesome Inventory Control

Includes a complete view of inventory and warehouse, like landed costs, batch and serial number traceability, multiple warehouse management, bin location tracking, minimum and maximum stock levels, multiple measuring units, etc.

Read more about this here.

3. Advanced Planning and Scheduling (APS)

Get meaningful insights into resource availability, capacity allocations, order times, lead times, bills of material, optimize labor and machine planning, etc. Balance supply and demand with purchase planning “wizards” and manage economic order quantity (EOQ) and purchase intervals, get recommendations on purchase orders, suggest the best suppliers for purchasing raw material based on their past records, lead time, payment cycle, etc.

4. Quality controls

Execute quality tests during the flow of material right from procurement and through the entire manufacturing process.

5. Management of work orders

Management of planned and released work orders, including notes, resources, instructions, and raw materials to be included

6. Estimation of costs to calculate profit margins

Estimation of costs of standard products, preparation of quotations for custom manufacturing orders.

7. Robust analytics dashboards

A 360-degree of the entire business operations, with multiple standard reports and dashboards containing crucial information, such as YTD sales, geography-wise sales, expense breakdown, profit/loss-making products, and much more, flexible ad-hoc queries and analyses, option to write own reports.

8. Bills of Materials (BOM) management

Includes BOM that help with kitting vs. full production bills of material management – sales, manufacturing, assembly, and template bills of management.

9. Supply chain management

Sales and purchase order management, including management of blanket orders and automated transactions, while taking cognizance of the EDI industry standards.

Benefits of SAP Business One for Manufacturing

  • Adds much-needed agility to manufacturing processes

With real-time cross-functional reporting, including manufacturing and logistics management, cost accounting, and controlling, SAP Business One infuses agility to manufacturing processes so that they can quickly adapt to changes in the manufacturing environment.

  • Reduces the cost of operations 

As manufacturing organizations function in a dynamic, fast-paced, and highly competitive market, SAP Business reduces the cost of operations by providing greater understanding and control over inventory, orders, and the overall manufacturing process.

This, in turn, leads to increased revenues through better planning, faster order processing, and the delivery of excellent customer service.

  • Enhances visibility into manufacturing processes and helps businesses make sound decisions

SAP Business One delivers real-time analytics and business intelligence metrics on-demand, giving managers access to critical, up-to-the-minute pictures of the true state of business through user-friendly reports and dashboards.

This helps manufacturing leaders process information quickly and more effectively and make informed business decisions.

  • Seamless integration with the Microsoft 365 Suite

SAP Business One integrates seamlessly with the M365 suite of apps. Consequently, customers do not have to install MS Word, Excel, or Outlook and can perform the following actions – 

  • Export and view reports and documents from SAP B1 to MS OneDrive as Word or Excel files.
  • Customize export templates.
  • Leverage Microsoft Outlook for hassle-free communication among various business functions.
  • Affordable

SAP Business One comes with the SAP brand name and ensures businesses get a scalable ERP solution with cutting-edge features – all at an affordable cost. 

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How can we help?

As an official SAP Silver Partner, Akshay Software helps clients deploy SAP Business One while ensuring cost efficiency, time-saving, and improved processes implementation.

Founded by experienced technocrats, we have 34+ years of experience serving industries, including textile, hospitality, manufacturing, marketing, and many more.

Our SAP services include – 

  • Migration to SAP B1 or integration with SAP B1
  • On-site hand-holding, online support
  • Business process-oriented methodology for rapid implementation
  • Configuration, customization, implementation, and support
  • Extensive portfolio of ready-made add-ons, dashboards, and reports

To know more about how SAP Business One can help your company, please feel free to contact us and schedule a demo.

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